Carney Confirms Rate Hike Is Near as BOE Heads for ‘Tipping Point’

  • Policy makers speak as inflation climbs to 5 1/2-year high
  • Officials see economic slack eroded, though not all agree

Pedestrians walk past the Bank of England (BOE) in the City of London, U.K., on Thursday, July 14, 2016.

Photographer: Chris Ratcliffe/Bloomberg
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Mark Carney reaffirmed that the Bank of England is close to its first interest-rate increase in over a decade, as inflation hit 3 percent and one of his colleagues said the economy is approaching a “tipping point.”

In a series of testimonies to lawmakers, the BOE governor and the two newest members of the rate-setting Monetary Policy Committee signaled that the erosion of economic slack is dominating their thinking as they prepare for a Nov. 2 decision. The appearances coincided with a report showing consumer prices rising at the fastest pace since April 2012.